Mortgage News

What Are the First Steps to Applying for an FHA Loan?

Without mortgage loan programs, many applicants would not qualify for the homes they want to buy.

Mortgage loan programs are excellent resources if you are struggling to finance the purchase of a home. And in this market, more people than you think are being forced to rely on some kind of financial aid. If you are in the preliminary stages of getting your FHA loan off the ground, remember to take your time and do proper prep research. Here are some tips to help you start the application process:

Eligibility

Contacting a qualified housing resource and confirming that you qualify for an FHA loan is imperative. Do this before you do anything else. Credit score, debt-to-income ratio, and verified income are all important elements. Almost all mortgage lenders accept and work with these housing loans, so once you know you are eligible you can move forward.

Budgeting

This is a critical step in the loan process. Many people make the mistake of steamrolling ahead to the paperwork. Making an informed choice early on between fixed-rate and adjustable rate mortgages will not only guarantee that you avoid unpleasant surprises down the line, but also that you get a mortgage within your financial means to afford. Evaluate your income and debt to see what kind of payments would be realistic in the long-term.

Standard Loan Application

From here, filling out the standard loan application will require organization and attention to detail. Getting all the proper documents ready to submit will likely be the most time-consuming part of this process. It’s important to get it right the first time, so make the best impression you can.